Charity registration number: 1185614
## The 2 Minute Foundation
Annual Report and Financial Statements for the Year Ended 31 December 2021
Fruition Accountancy LLP 29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
## **The 2 Minute Foundation**
## **Contents**
|Reference and Administrative Details|1|
|---|---|
|Trustees' Report|2 to 3|
|Statement of Trustees' Responsibilities|4|
|Independent Examiner's Report|5|
|Statement of Financial Activities|6 to 7|
|Balance Sheet|8|
|Notes to the Financial Statements|9 to 18|
## **The 2 Minute Foundation**
## **Reference and Administrative Details**
## **Trustees**
Kate Jane Cox
Emma Thomasson Melvyn John Garrett Andrew James Cummins (resigned 25 March 2021) Adam James Hall Stuart Spooner (appointed 2 November 2021) Karen Wilson (appointed 2 November 2021) Martin Jackson (appointed 2 November 2021) Martin Dorey (appointed 16 February 2022)
## **Principal Office**
## **Charity Registration Number**
2 St Helen's Close Croyde Devon EX33 1PW 1185614
**Independent Examiner**
Fruition Accountancy LLP 29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
Page 1
## **The 2 Minute Foundation**
## **Trustees' Report**
The trustees present the annual report together with the financial statements of the charity for the year ended 31 December 2021.
## **Objectives and activities**
## _**Objects and aims**_
To promote conservation, protection and improvement of the physical and natural environment. To advance the education of the public by providing all information, advice and raising awareness on issues surrounding waste generation, waste management and waste recycling primarily across the UK and Ireland with global aspirations.
## _**Public benefit**_
The trustees confirm that they have complied with the requirements of section 4 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales.
## **Achievements and performance**
At the end of 2021 the Charity was still operating with 11 members of staff, of which 2 were full-time and 9 were part-time. During the year, the environmental beach school which operates free to locals and visitors alike was extended with multiple sessions running daily throughout the year. Funding was secured to continue the Beach School throughout 2022. A 100% recycled beach cleaning station was launched , the first 20 of which were made from litter collected from beaches close to the Charity's base in North Cornwall by their own team. A grant was used to bring several beach cleaning stations back into use after a year of being in storage during lockdown. They were topped up with new litter-picking equipment and also sanitiser units were added to make them safer. During the Autumn, a tour of Dorset beaches was organised where, working with the Charity's volunteers, talks were arranged for several local schools teaching the children about what happens when plastics end up in the ocean and the importance of keeping our beaches and environments free of litter. Work continued throughout the year on developing our app which will be a market-leading tool in collecting data of litter collected from our beaches, rural and urban spaces. It is hoped this will be ready to be launched in the Autumn of 2022.
## **Financial review**
## _**Policy on reserves**_
Whilst our Charity launched in January 2020, this was just 3 months before lockdown, and we are still to experience a normal year of activities with no restrictions. We believe this has severely impeded us in achieving our Reserves Policy aim and we are still working towards achieving this. We aim to keep reserves of £45k which is equivalent to three months running costs.
## **Structure, governance and management**
## _**Nature of governing document**_
The foundation was registered as an Charitable Incorporated Organisation (CIO) on 4 October 2019 and is governed by a CIO constitution. The foundation commenced it's activities on 1 January 2020.
## _**Recruitment and appointment of trustees**_
Trustees are appointed by the board inviting them for interview. Once all of the board are in agreement then the trustee is appointed.
Page 2
## **The 2 Minute Foundation**
## **Trustees' Report**
The annual report was approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Melvyn John Garrett Trustee
Page 3
## **The 2 Minute Foundation**
## **Statement of Trustees' Responsibilities**
The trustees are responsible for preparing the trustees' report and the financial statements in accordance with the United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) and applicable law and regulations.
The law applicable to charities requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and of the incoming resources and application of resources of the charity for that period. In preparing these financial statements, the trustees are required to:
- select suitable accounting policies and then apply them consistently;
- observe the methods and principles in the Charities SORP;
- make judgements and estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in business.
The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the applicable Charities (Accounts and Reports) Regulations, and the provisions of the constitution. The trustees are also responsible for safeguarding the assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Approved by the trustees of the charity on .................... and signed on its behalf by:
......................................... Melvyn John Garrett Trustee
Page 4
## **The 2 Minute Foundation**
## **Independent Examiner's Report to the trustees of The 2 Minute Foundation**
I report on the accounts of the charity for the year ended 31 December 2021 which are set out on pages 6 to 18.
## **Respective responsibilities of trustees and examiner**
The trustees are responsible for the preparation of the accounts. The trustees consider that an audit is not required for this year under section 144(2) of the Charities Act 2011 (the 2011 Act) and that an independent examination is needed. It is my responsibility to:
- examine the accounts under section 145 of the 2011 Act;
- to follow the procedures laid down in the general Directions given by the Charity Commission under section 145(5)(b) of the 2011 Act; and
- to state whether particular matters have come to my attention.
## **Basis of independent examiner’s report**
My examination was carried out in accordance with the general Directions given by the Charity Commission. An examination includes a review of the accounting records kept by the charity and a comparison of the accounts presented with those records. It also includes consideration of any unusual items or disclosures in the accounts, and seeking explanations from you as trustees concerning any such matters. The procedures undertaken do not provide all the evidence that would be required in an audit and consequently no opinion is given as to whether the accounts present a ‘true and fair view’ and the report is limited to those matters set out in the next statement.
## **Independent examiner's statement**
In connection with my examination, no matter has come to my attention:
- (1) which gives me reasonable cause to believe that in any material respect the requirements:
- to keep accounting records in accordance with section 130 of the Charities Act 2011; and
- to prepare accounts which accord with the accounting records and comply with the accounting requirements of the 2011 Act
have not been met; or
- (2) to which, in my opinion, attention should be drawn in order to enable a proper understanding of the accounts to be reached.
......................................
29 Wood Street Stratford-upon-Avon Warwickshire CV37 6JG
Date:.............................
Page 5
## **The 2 Minute Foundation**
## **Statement of Financial Activities for the Year Ended 31 December 2021**
|**Note**
**Income and Endowments from:**
Donations and legacies
2
Charitable activities
3
Other trading activities
4
Other income
5
Total Income
**Expenditure on:**
Raising funds
6
Charitable activities
7
Total Expenditure
Net (expenditure)/income
Gross transfers between funds
Net movement in funds
**Reconciliation of funds**
Total funds brought forward
Total funds carried forward
14
**Note**
**Income and Endowments from:**
Donations and legacies
Charitable activities
Other trading activities
Other income
Total Income
**Expenditure on:**
Raising funds
Charitable activities
Total Expenditure
Net movement in funds
**Reconciliation of funds**
Total funds carried forward
14|**Unrestricted**
**funds**
**£**
30,881
114,512
153
7,018
152,564
(7,541)
(158,516)
(166,057)
(13,493)
23,394
9,901
30,409
40,310
**Unrestricted**
**funds**
**£**
41,922
62,080
385
26,840
131,227
(17,317)
(83,501)
(100,818)
30,409
30,409|**Restricted**
**funds**
**£**
-
60,507
-
-
60,507
-
(45,511)
(45,511)
14,996
(23,394)
(8,398)
65,752
57,354
**Restricted**
**funds**
**£**
-
74,414
-
-
74,414
-
(8,662)
(8,662)
65,752
65,752|**Total**
**31 December**
**2021**
**£**
30,881
175,019
153
7,018|
|---|---|---|---|
||||213,071|
||||(7,541)
(204,027)|
||||(211,568)|
||||1,503
-|
||||1,503
96,161|
||||97,664|
||||**Total**
**31 December**
**2020**
**£**
41,922
136,494
385
26,840|
||||205,641|
||||(17,317)
(92,163)|
||||(109,480)|
||||96,161|
||||96,161|
All of the charity's activities derive from continuing operations during the above two periods.
Page 6
## **The 2 Minute Foundation**
## **Statement of Financial Activities for the Year Ended 31 December 2021**
The funds breakdown for 2020 is shown in note 14.
Page 7
## **The 2 Minute Foundation**
## **(Registration number: 1185614) Balance Sheet as at 31 December 2021**
|**Note**
**Fixed assets**
Tangible assets
10
**Current assets**
Stocks
11
Debtors
12
Cash at bank and in hand
**Creditors: Amounts falling due within one year**
13
**Net current assets**
**Net assets**
**Funds of the charity:**
**Restricted funds**
**Unrestricted income funds**
Unrestricted funds
**Total funds**
14|**31 December**
**2021**
**£**
1,103
13,803
40,515
53,302
107,620
(11,059)
96,561
97,664
57,354
40,310
97,664|**31 December**
**2020**
**£**
-
-
28,180
68,783|
|---|---|---|
|||96,963
(802)|
|||96,161|
|||96,161|
|||65,752
30,409|
|||96,161|
The financial statements on pages 6 to 18 were approved by the trustees, and authorised for issue on .................... and signed on their behalf by:
......................................... Melvyn John Garrett Trustee
Page 8
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **1 Accounting policies**
## **Statement of compliance**
The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) - (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011.
## **Basis of preparation**
The 2 Minute Foundation meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.
## **Exemption from preparing a cash flow statement**
The charity opted to early adopt Bulletin 1 published on 2 February 2016 and have therefore not included a cash flow statement in these financial statements.
## **Going concern**
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern.
## **Income and endowments**
Voluntary income including donations, gifts, legacies and grants that provide core funding or are of a general nature is recognised when the charity has entitlement to the income, it is probable that the income will be received and the amount can be measured with sufficient reliability.
## _**Donations and legacies**_
Donations and legacies are recognised on a receivable basis when receipt is probable and the amount can be reliably measured.
## **Expenditure**
All expenditure is recognised once there is a legal or constructive obligation to that expenditure, it is probable settlement is required and the amount can be measured reliably. All costs are allocated to the applicable expenditure heading that aggregate similar costs to that category. Where costs cannot be directly attributed to particular headings they have been allocated on a basis consistent with the use of resources, with central staff costs allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use. Other support costs are allocated based on the spread of staff costs.
## _**Raising funds**_
These are costs incurred in attracting voluntary income, the management of investments and those incurred in trading activities that raise funds.
Page 9
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## _**Charitable activities**_
Charitable expenditure comprises those costs incurred by the charity in the delivery of its activities and services for its beneficiaries. It includes both costs that can be allocated directly to such activities and those costs of an indirect nature necessary to support them.
## **Support costs**
Support costs include central functions and have been allocated to activity cost categories on a basis consistent with the use of resources, for example, allocating property costs by floor areas, or per capita, staff costs by the time spent and other costs by their usage.
## **Governance costs**
These include the costs attributable to the charity’s compliance with constitutional and statutory requirements, including audit, strategic management and trustees’s meetings and reimbursed expenses.
## **Taxation**
The charity is considered to pass the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the charity is potentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.
## **Tangible fixed assets**
Individual fixed assets costing £0.00 or more are initially recorded at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
## **Depreciation and amortisation**
Depreciation is provided on tangible fixed assets so as to write off the cost or valuation, less any estimated residual value, over their expected useful economic life as follows:
**Asset class Depreciation method and rate** Office equipment 3 Years Straight Line
## **Stock**
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell, after due regard for obsolete and slow moving stocks. Cost is determined using the first-in, first-out (FIFO).
## **Trade debtors**
are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of is established when there is objective evidence that the will not be able to collect all amounts due according to the original terms of the receivables.
Page 10
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **Cash and cash equivalents**
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
## **Fund structure**
Unrestricted income funds are general funds that are available for use at the trustees's discretion in furtherance of the objectives of the charity.
Designated funds are unrestricted funds set aside for specific purposes at the discretion of the trustees.
Restricted income funds are those donated for use in a particular area or for specific purposes, the use of which is restricted to that area or purpose.
## **2 Income from donations and legacies**
## **Unrestricted funds**
|Donations and legacies;
Donations from companies, trusts and similar
proceeds
Donations from individuals|**General**
**£**
18,821
12,060
30,881|**Total**
**31 December**
**2021**
**£**
18,821
12,060
30,881|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
18,076
23,846|
|---|---|---|---|
||||41,922|
## **3 Income from charitable activities**
## **Unrestricted funds**
|Grants
Cleaning
stations and
services|**Designated**
**£**
38,749
-
38,749|**General**
**£**
-
75,763
75,763|**Restricted**
**funds**
**£**
60,507
-
60,507|**Total**
**31 December**
**2021**
**£**
99,256
75,763
175,019|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
112,900
23,594|
|---|---|---|---|---|---|
||||||136,494|
Page 11
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **4 Income from other trading activities**
## **Unrestricted funds**
||**Unrestricted**
**funds**|||
|---|---|---|---|
|Trading income;
Shop income from sale of donated goods and
services|**General**
**£**
153
153|**Total**
**31 December**
**2021**
**£**
153
153|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
385|
||||385|
## **5 Other income**
Included in other income is £6,018 Coronavirus Job Retention Scheme grant, and £1,000 Apprenticeship allowance.
Page 12
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **6 Expenditure on raising funds**
## **a) Costs of trading activities**
## **Unrestricted funds**
||**Unrestricted**
**funds**|||
|---|---|---|---|
|Fundraising costs
Costs of goods sold|**General**
**£**
7,099
442
7,541|**Total**
**31 December**
**2021**
**£**
7,099
442
7,541|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
14,873
2,444|
||||17,317|
## **7 Expenditure on charitable activities**
## **Unrestricted funds**
|Grants
Cleaning stations
and services
Allocated support
costs
Governance costs|**Designated**
**£**
40,697
-
-
-
40,697|**General**
**£**
826
3,720
110,303
2,970
117,819|**Restricted**
**funds**
**£**
45,511
-
-
-
45,511|**Total**
**31 December**
**2021**
**£**
87,034
3,720
110,303
2,970
204,027|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
10,751
-
80,612
800|
|---|---|---|---|---|---|
||||||92,163|
Page 13
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **8 Analysis of governance and support costs**
## **Governance costs**
## **Unrestricted funds**
||**Unrestricted**
**funds**|||
|---|---|---|---|
|Independent examiner fees|**General**
**£**
2,970
2,970|**Total**
**31 December**
**2021**
**£**
2,970
2,970|**Total**
**4 October**
**2019 to 31**
**December**
**2020**
**£**
800|
||||800|
Page 14
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **9 Taxation**
The charity is a registered charity and is therefore exempt from taxation.
## **10 Tangible fixed assets**
|**10 Tangible fixed assets**|||
|---|---|---|
|**Cost**
Additions
At 31 December 2021
**Depreciation**
Charge for the year
At 31 December 2021
**Net book value**
At 31 December 2021|**Furniture**
**and**
**equipment**
**£**
1,212
1,212
109
109
1,103|**Total**
**£**
1,212|
|||1,212|
|||109|
|||109|
|||1,103|
## **11 Stock**
|**11 Stock**|||
|---|---|---|
|Stocks
**12 Debtors**
Trade debtors
Prepayments
Accrued income
VAT recoverable
Other debtors|**31 December**
**2021**
**£**
15,166
592
107
-
24,650
40,515|**31 December**
**2021**
**£**
13,803|
|||**31 December**
**2020**
**£**
1,464
1,016
5,183
46
20,471|
|||28,180|
Page 15
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **13 Creditors: amounts falling due within one year**
|Other taxation and social security
VAT payable
Other creditors
Accruals
**14 Funds**
**Balance at**
**1 January**
**2021**
**£**
**Unrestricted funds**
**_General_**
Unrestricted Fund
25,873
**_Designated_**
Unrestricted Designated
Fund
4,536
**Total unrestricted funds**
30,409
**Restricted funds**
Restricted Fund
65,752
**Total funds**
96,161
**Unrestricted funds**
**_General_**
Unrestricted Fund
**_Designated_**
Unrestricted Designated Fund
**Total unrestricted funds**
**Restricted funds**
Restricted Fund|**31 December**
**2021**
**£**
**31 December**
**2020**
**£**
2,856
-
2,842
-
2
-
5,359
802
11,059
802
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Transfers**
**£**
**Balance at**
**31**
**December**
**2021**
**£**
113,815
(125,360)
25,982
40,310
38,749
(40,697)
(2,588)
-
152,564
(166,057)
23,394
40,310
60,507
(45,511)
(23,394)
57,354
213,071
(211,568)
-
97,664
**Incoming**
**resources**
**£**
**Resources**
**expended**
**£**
**Balance at**
**31 December**
**2020**
**£**
126,691
(100,818)
25,873
4,536
-
4,536
131,227
(100,818)
30,409
74,414
(8,662)
65,752|**31 December**
**2020**
**£**
-
-
-
802|**31 December**
**2020**
**£**
-
-
-
802|
|---|---|---|---|
||||802|
||||**Balance at**
**31**
**December**
**2021**
**£**
40,310
-|
||||40,310
57,354|
||||97,664|
|||||
|||30,409
65,752||
Page 16
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
|**Total funds**|**Incoming**
**resources**
**£**
205,641|**Resources**
**expended**
**£**
(109,480)|**Balance at**
**31 December**
**2020**
**£**
96,161|
|---|---|---|---|
During the year permission was received to transfer unspent funds from The National Lottery to general core reserves.
Page 17
## **The 2 Minute Foundation**
## **Notes to the Financial Statements for the Year Ended 31 December 2021**
## **15 Analysis of net assets between funds**
|**15 Analysis of net assets between funds**||||
|---|---|---|---|
|Tangible fixed assets
Current assets
Current liabilities
Total net assets|**Unrestricted**
**funds**
**General**
**£**
1,103
50,266
(11,059)
40,310|**Restricted**
**funds**
**£**
-
57,354
-
57,354|**Total funds**
**£**
1,103
107,620
(11,059)|
||||97,664|
Page 18